Are You interested in what bridging finance services we have to offer at Pyxis?
Find our available bridging finance options below.

What is a Bridging loan?

Bridging loans are a short term way to borrow money and are used to ‘bridge the gap’ if you need to buy one property before selling another. Unlike mortgages, bridging loans are designed with speed of delivery in mind. Agreed amounts are transferred quickly as time is often the primary pain point. Bridging loans are short-term finance deals with repayment times from 1 to 36 months. These loans are secured against land, residential or commercial property.

What Can I Use a Bridging Loan for?

There are many reasons why bridging finance might be used as a short-term funding solution. Bridging Loan uses include the quick purchase of unmortgageable commercial and residential properties that require light refurbishment or planning permission for change of use, or the purchase of a property at auction requiring swift access to funds.

The purchase of land that has potential to be developed and require planning permission before longer-term finance or development finance can be approved.

Bridging finance can be used to support business cash-flow, business expansion, pay tax liabilities or creditor payments.

You can also use bridging finance to refinance a current bridging lender if you have been unable to exit their facility before the end of the term.

Over 20 years financial industry experience

With over 20 years experience in financial services, our team of advisers have a wealth of knowledge and can advise on the best (and most cost effective) bridging product for your short term needs.

Our success hinges on trust, and we’re proud to have numerous clients who not only return but also recommend Pyxis Capital. We prioritise transparency from the get-go, providing you with an Initial Disclosure Document that outlines any potential fees. Our Heads of Terms and Recommendation Letters are clear and include comprehensive information on all fees and pricing.

Call us on 01257 543072 and one of our advisors will be happy to help.

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Try our quick decision loan calculator to get a free quote

Types of Bridging Loan

Bridging finance is a funding product that is secured against property or land.  The Financial Conduct Authority define a Bridging Loan as an MCD exempt bridging loan; or regulated mortgage contract which has a term of twelve months or less.

The option of taking out a bridging is often explored when individuals are experiencing difficulties with the purchase of property and a quick completion is required. Since they were first introduced, bridging loans with benefits for different circumstances are now available.

Commercial Bridging Loans

Designed for those looking to finance a commercial property.

Residential Bridging Loans

Designed to help those looking to purchase a residential property.

Land Bridging Loans

Helping borrowers quickly purchase or refinance a plot of land.

Refinancing Bridging Loans

Designed to help repay bridging finance taken out with another lender.

Business Bridging Loans

Available to company directors and owners looking to raise finance.

Auction Bridging Loans

Designed to help those looking to purchase a property at Auction.

Agricultural Bridging Loans

For agricultural borrowers looking to refinance property and land.

Second Charge Bridging Loan

Secured against a property that already has a mortgage on it.

Bad Credit Bridging Loans

Available for individuals who have a negative credit history.

100% Bridging Loans

A bridging loan that covers the full value of the property (Loan to Value).

Bridge-To-Let Finance

For who are looking for a loan on a property they intend to rent out.

Try our Bridging Loan Calculator

Use our easy to use bridging calculator for an estimated quote.

pyxis capital loan

Regulated Bridging Loans

A regulated bridging loan is a type of short-term, property-backed loan secured against the borrower’s primary residence. Typically used to cover the financial gap between selling an existing property and acquiring a new one, these loans provide a swift solution for those seeking immediate funds to secure their ideal home.

For more information, contact us today and we’ll provide you with a customised breakdown of your Bridging Loan, detailing the specific interest rate applied, total cost, monthly payments (if applicable), borrowed amount, and any potential early repayment charges.

Key Features of Regulated Bridging Loans

  • Fast Funding: Receive funds in a matter of days, subject to Ts&Cs
  • Free Legal Services: Loans with a single security come with complimentary legal assistance.
  • No Proof of Income: Minimal documentation requirements.
  • No Early Repayment Fees: Flexibility in settling the loan ahead of schedule.

Practical Applications of Regulated Bridging Loans

  1. Purchasing a new home before selling the current property.
  2. Acquiring a property at auction, necessitating quicker financing than traditional mortgages, with the option to later refinance on a standard mortgage.

Understanding the Term ‘Regulated’ and Its Impact

When we refer to a regulated bridging loan, it means that the loan falls under the oversight of the Financial Conduct Authority (FCA). The FCA serves as a regulator for financial services, working to safeguard consumers, uphold industry integrity, and foster healthy competition in the consumer’s interest.

The regulatory framework ensures a higher level of protection against unfair lending practices. It’s important to note that these regulations specifically apply to personal borrowers and do not extend to investors or business borrowers.

These regulations are applicable to properties intended for residential use, whether presently occupied or previously lived in by the applicant or a close relative. For a more detailed understanding, feel free to get in touch with us.

Bridging Loan Calculator

Find out what a Bridging loan will look like for you and your situation.

Simply select the amount you want to borrow, the relevant interest rate and the amount of time you would like the bridging loan to last. Find out in seconds exactly how a bridging loan looks for you.

If you are unsure how to proceed, or wish to take the next steps, call us and we’ll take care of the rest. Our experts are on hand to guide you through the process and find a solution that suits you.

We’re experts in complex finance situations

loan handshake introducers
  • Adverse credit
  • Self-employment
  • Low income

  • Poor credit history
auction business farming land refinancing residential

Why Use Pyxis Capital?

The Team at Pyxis Capital have extensive knowledge of bridging finance and take time to understand a client’s needs and requirements. You will have a single point of contact from start to finish and will also be provided with direct contact details for one of our Company Directors. Most importantly you won’t be left with finding an Exit Strategy from your bridging finance facility. As this is something that will be researched on day one and if possible, agreed in principle with a long-term lender. Having strong relationships with leading UK lenders, including specialist lenders, family offices, and private investors, allows us to secure the bridging loan you need:

  • Loans up to £300k in just 3 days
  • Loans up to £700k in 7 days
  • Loans up to £250m in 14 days

When time is of the essence, we are confident in our ability to swiftly arrange your bridging loan. Obtain your no-obligation quote today for the best possible solution.

Bridging loan lending criteria:

Loan to value (LTV) Up to 80% maximum 
Loan term 1 to 24 months
Loan amount £26,000 up to £250m
Interest types Rolled-up, retained or serviced
Interest rates From 0.44%
Charge 1st, 2nd & 3rd charges
Decision Immediate decision in principle (DiP/AiP)
Completion 3 days to 2 weeks
Early repayment fees None
Availability England, Scotland, Wales and Northern Ireland & Europe

Individuals, Companies, SPVs

No credit & adverse credit considered

Exit strategy Sale or refinance

Frequently Asked Questions

Often referred to as a bridging loan, bridging finance is a short-term funding solution that is secured on a first on second charge basis against property or land.

Bridging finance can be arranged quickly unlike a mortgage or second charge mortgage that can take several weeks or months.

The FCA Defines a Bridging Loan as:
(1) an MCD exempt bridging loan; or
(2) (other than in (1)) a regulated mortgage contract which has a term of twelve months or less.

https://www.handbook.fca.org.uk/handbook/glossary/G2949.html

Bridging finance is a funding product that is secured against property or land.

This was originally used when problems were being experienced with the purchase of property and a quick completion was required. However, there are a number of bridging finance products now available for different circumstances.

Bridging loan products now include Residential Property Bridge; Commercial Property Bridge; Land Bridge; Business Bridge (Tax & Cash-Flow); Auction Bridge; Farming & Agricultural Bridge; Refinancing & Exit Bridge

Bridging finance is a short-term loan secured against property or land for an agreed period of 1 month to 36 months.

Bridging finance is available up to 80% of the property value, and in the case of land 70% if planning permission is granted and 60% without planning permission.

Interest is charged and can be serviced monthly, subject to the borrower satisfying affordability requirements. Alternatively interest can be retained on day one or rolled-up and paid when you exit the bridging finance facility.

The exit from a bridging finance facility will depend on the borrowers’ long-term objectives.

It is however important to have an exit strategy.

Your exit strategy could include sale of the property used as security for bridging finance; refinancing the property onto a long-term commercial mortgage or BTL mortgage; sale of alternative assets; using personal savings/investments or business cash.

If you are unable to exit, there is the option to refinance the bridging finance loan.

The cost of bridging finance is determined by a number of factors including security type; borrower profile; property location; LTV; term; and level of borrowing required.

Rates start at 0.45% per month to 1.65% per month.

In addition, other fees need to be taken into consideration include Lender Arrangement Fee, which is typically 2%.

If a valuation is required, a fee is payable at the point of application and an undertaking to pay legal fees will normally be requested.

An adverse credit profile will influence the rate of interest charged, but isn’t a barrier to obtaining bridging finance.

Additional underwriting will be required, and a clear bridging finance exit strategy will need to be demonstrated.

Bridging finance and development finance are quite different types of finance products.

You can use bridging finance for light refurbishments through to heavy refurbishments.

Development finance is required if it’s your intention to change the property structure with the removal of external walls or add an extension.

If all parties are motivated and the borrower is organised, bridging finance can be arranged within a matter of days but normally takes 10 to 21 days.

There are many reasons why bridging finance might be used as a short-term funding solution.

They include the quick purchase of unmortgageable commercial and residential properties, that require light refurbishment or planning permission for change of use.

The purchase of land that has potential to be developed and require planning permission before longer-term finance or development finance can be approved.

Bridging finance can be used to support business cash-flow, business expansion, pay tax liabilities or creditor payments.

You can also use bridging finance to refinance a current bridging lender if you have been unable to exit their facility before the end of the term.

This will vary from borrower to borrower and be dependent on the circumstances that have resulted in you being unable to repay the bridging finance by the end of the term.

It could be as simple as extending the current facility, which might incur cost. Or refinancing on to an alternative bridging loan facility.

The aim with bridging finance is to keep the application process as simple and straight forward as possible.

The key stage includes completing a client questionnaire and understanding your needs and requirements; issuing an Agreement In Principle; collecting KYC (Know Your Customer) documentation; completing a valuation if required; issuing a formal Offer Letter; instructing solicitors; completion of facility and release of funds.

The minimum level of bridging finance available is £50,000 up to £25,000,000 and higher if there is suitable security.

The maximum Loan to Value (LTV) is 80% and this can be stretched to 100% if there are other suitable commercial or residential assets in the background.

The information and documentation that we will require for bridging finance varies from borrower to borrower.

It’s worth preparing the following, should it be requested…

Passport & Driving Licence (All Applicants)

  • 1 Months Personal Bank Statements (All Applicants)
  • 1 to 3 Months Business Bank Statements
  • Most Recent Company Accounts
  • Most Recent SA302

Get in Touch

Fill out our contact form here to talk to us today with any queries you may have regarding our services.

Alternatively, you can always try our loan calculator and get a quick quote below!

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